dagen: i am dagen mcdowell. in this opportunity for mitt romney and last night's debate. connell: look at the stock market today. it has been in a tailspin. a bad outlook on the economy. dagen: a bad apple? maybe, maybe not. why the tech giant is pushing ahead with the ipod mini. connell: let's start with the mass of the markets. nicole petallides on the floor of the new york stock exchange. it is ugly down there. nicole: it is indeed. we sell we were breaking key support levels on the dow and s&p. some technical analyst jumping in right away. when i was talking with mark newman, he was looking and saying that the parish trades

pull us to the downside for these major averages. on the s&p 500 he was looking at 13,090. talking about the three names that reported without that united technologies and also dupont. you can see these names coming out and not looking too good. as we see these big names coming out, they are giving forecasts. a lot of these s&p 500 companies are giving forecasts and when they have to lower the expectations. whether it is at the top and or bottom and or having the whole thing be below what analysts were expected. that is what we were looking at. 3m would be another name with a tough outlook as well. back to you. dagen: thank you. third and final presidential debate was also about what was not said last night.

gop challenger mitt romney choosing not to push bolivia situation with president obama. he thinks mr. romney missed an opportunity to win this thing. >> i think you could have done it in and authoritative way. as an american citizen, i would like to know what happened there. i would like to know about when jay carney did the same thing. i do not want to see for americans slaughtered anywhere. dagen: to mr. o'reilly's point, he made a prediction, if romney won the debate decisively, he would be the next president. he did not. what is my next guest think about this? he just travel to libya last month following the deadly attack to the u.s. consulate.

congressman, good to see you. should mr. romney had demanded tougher answers. >> i think that romney did exactly what he needed to do. he definitely talked about how to bring together the economy and foreign affairs and in a way that only that romney could. pointing out the failures of the obama administration and the fact that we cannot afford four more years of administration under barack obama. dagen: you did not want more detailed answers from the president? on why our un ambassador without saying the things that she did early on? >> there is no dow -- they talked about so many different stories. they need to come clean on this. the debate, yes, you could haae

gone deeper. you have to make a strategic decision. do you want to feed the floor to the president or do you as a candidate go out and share your vision for the country and for the world. that is opportunity. i think mitt romney did exactly what he needed to do. give the americans the confidence that he could be the next commander in chief. dagen: on syria, on iran, was her -- was there enough divide? >> did you serve in the united states military, you understand that the grading of the infrastructure. the president can spew all he wants about nanette and those types of things. i think it was a rehearsed line. when you look at a key state, say virginia and others, that

have such military assets and to hear the president talk about that in such a demeaning derogatory way, i do not think he gains any votes. that is a huge change and difference between barack obama and mitt romney. dagen: did mitt romneymake, though, enough of a connection whether it is the weak economy or the $16 trillion that? did he hit it hard enough? >> absolutely. that romney talks about what we need to do in terms of china and currency manipulation. we talk about our friendship with israel. there is no one that believes that president obama has bent over backwards to solidify our relationship with israel. i think mitt romney is exceptionally strong and that

ray. they have demonstrated it in their talks and actions. i think mitt romney coming across presidential. dagen: in two weeks time hopefully we will know. congressman, thank you event hopefully? dagen: well, you know, it has happened before. congressman, tank you very much. connell: we may not know. we will pick up one of the points about china. it came up towards the end of the debate last night. the moderator bob schieffer asked romney if he thought it would spark a trade war. >> they sell us about this much stuff every year and resell them about this much.

it is pretty clear who does not want a trade war. there is one going on right now which we do not know about. it is a silent one and they are winning. connell: what do you make of this whole, you know, mitt romney playing donald trump on china throughout the campaign and doubling or tripling making the point last night? >> connell, i am a free trader. i have been one for 30 years as an economist. i do not agree that china is a currency manipulator. they do take their currency to the u.s. that is not why their goods are cheap. sure, raising their currency could make their goods more expensive. remember, they have low cost of production, low labor rates and they subsidize their companies. the bottom line is that u.s. consumers get pretty good quality products at very low prices which means we have more

to spend on other things. i am worried that this could cause a trade war. i do not like it when candidates talk about fighting a trade war, especially with a country like china. connell: i think there are a lot of people that agree with romney on other issues. that said, what are the actual effects, the economics of it if romney were to say, day one, you guys are a currency manipulator. what with that of xp on day one to and a three and a four? >> you can call someone a currency manipulator, but then it depends on what you do.

let's say american consumers are saving $20 by buying a chinese tire. if we put a tariff of $20, that is then $20 that consumers do not have to spend on a haircut or a meal out or something produced in the united states. a tariff is a tax on the consumer. it reduces living standards. this idea that somehow we reason our unemployment rate as being part because of china, that is not true. we have way bigger issues. connell: speaking of problems we have to deal with, about what is happening today and in the economy, the dow is down almost 240 points as we speak.

the data has not been great. where are we right now? >> i think our base case is we have avoided a recession. we have seen, clearly seen, in the last three or four months that businesses especially have held back. business investment will we get the third-quarter gdp growth, it will have fallen. i think 12 quarters in a row it has gone up. now it will go down. we are seeing that in these corporate earnings reports. it is worrisome to me in that uncertainty is causing businesses to hold back on investment. i do not think it is the front end of the recession. i think once the election is over the uncertainty clears. connell: dupont, united technologies, uncertainty, that is what they are talking about. brian, thank you. >> thanks. great to be with you.

dagen: does the word sequestration -- president obama says these defense cuts will not happen. now his campaign is an spin mode. we see what k.t. mcfarland has to say about it. connell: been there is apple. about to shoot itself in the foot with the new ipad mini. some analysts saying that is exactly what will happen. we have already talked about the stock market being down so much. look at oil. down to $86. we will be right back. ♪

dagen: it is ugly and it is also quarter past the hour. it could be worst. 239 lost on the dow. nicole: we are under some pressure here, dagen and connell. the pressure remains. you see the dow down 1.8%.

we do not see these big drops too often here on wall street. this is mimicking what we saw on friday. 13,130 on the dow. they are giving earnings outlook that they are having to cut the numbers. let's take a look at xerox. it falls into another company with a tough quarter or a tough outlook. they reported quarterly profit that dropped 12%. they lowered the top end of their forecast for xerox. this is pushing the stock right around the levels that we saw in june 2009. back to you. dagen: thank you, nicole. connell: you would think this would be a reason to get excited on a down day, the release of the ipod mini. it is stirring up some controversy about the future of

apple. dagen: neil cavuto is here to talk about the final weeks of the election. what is the impact of this tumbling stock market going to do? what people do two weeks from now. take a look at the dollar and how it is holding up today. ♪

>> i am going green with their fox news minute. hopes that -- are looking bleak. violence continues to rage. government warplanes struck a rubble town in the north today. an autopsy is set for today on the body of a 12 year old new jersey girl who went missing over the weekend. her body was found last night and a recycle bin just blocks from her home. it has not been labeled as a homicide yet. armstrong delayed at the mention of his seven titles from his twitter bio hours after the

union and him and stripped him of his wins. those are your news headlines on the fox business network. back to connell. connell: look at all of this right on your screen. worse day in the markets since june. big companies, 3m, dupont, dow chemicals. the economy is not so great. we are down 2% across-the-board. dagen: less than two hours until apple unveiled its many ipad. a whopping 84 million ipad being sold since its debut in 2010. rob is the president of -- group joining us from las vegas. >> it all depends on how it is priced. at $200.

the rumor is the ipad many will come out above $300 would mean that it would not sell and they try to match priced at $200 that means there is zero margins and it will cannibalize the regular ipad sales. dagen: why do it then? why have this sale and product? >> because the 7-inch tablets have been selling very well. i think it caught apple by surprise. the 7-inch tablet is easier to carry. and when you are buying it as a gift, it is a lot easier to buy a $200 gift and a $500 gift. it would boost tablet dominance if they do not do this. dagen: is there anyway to know how it will stand up against, other than price, against

penndel fire, against the android tablets? >> it looks to be competitive. recognize the nexus send and the kindle, both companies put in a lot of work. it is hard to think that it could be better. i think it will be competitive, but enough better to justify the price that apple would have to charge to get the margins that they require, i do not think so. dagen: look past this smaller tablet, this smaller ipad, the stock has been weak recently. what is the next product, the next thing that will really push this company ahead and push the stock higher? >> steve jobs hinted about a

television product before he died. he said he actually fixed the problem with apple tv and we are still waiting for that product, whatever that product is to hit market. gateway tried tv and gateway is not really around anymore as an independent company. so many people from hp tried televisions. so many big companies like apple have failed at tvs. a lot of people are skeptical that they can do this. dagen: are there enough supplies out there? >> it should hold well through the first quarter. samsung and even nokia are hitting that product really hard towards the end of that order. once you get to the initial demand, the competitive environment is a much longer going into next year than it has been in the past that i am a little worried. dagen: on the ropes.

it was great to see you. take care. connell: sequestration, it will not happen. that is what the president told us last night. dagen loves this word, by the way. dagen: it makes me excited. [ laughter ] connell: it is all about defense spending. dagen: mary shapiro may not be the head of the securities and exchange commission much longer. charlie gasparino is here to fill you in. there are winners on that s&p today. yahoo! caught a 5% bump on that. your earnings were not so lousy. what are you going to do for me next quarter? ♪

connell: markets now are kind of ugly. sequestration has become our word of the day. the president says it will not have been. k.t. mcfarland is with us. in the final stretch, neil cavuto telling us what the candidates need to do in the last few weeks leading up to election day. charlie gasparino tells us mary shapiro is ready to help over the rings at show. dagen: this is nothing to laugh at or even smirk at. nicole: this is something that hits wall street and main street, dagen and connell. the dow is down 245 points. we are seeing broad-based

selling. see that, that is over 200 million shares. it just shows you that selling is broad-based. twenty-nine of the 30 components are in the red. we see a majority of the names reporting the numbers coming out with other numbers that ms. or below their forecast. monster energy drink has down arrows. they are being investigated for five deaths. monster says they are not responsible for the deaths. one of the deaths was for a young girl who drank two within 48 hours and had a heart condition. dagen: we are on top of last night's debate. the question of defense cuts was asked. here is how they answered. >> i will not cut our military budget by a trillion dollars

which is a combination of the budget cuts that the president has, as well as the sequestration cuts. that is making our future less certain and less secure. >> first of all, sequester is not something i propose, it is something that congress has proposed. it will not happen. connell: that is pretty strong language. after the debate, they seem to be backtracking. everyone in washington agrees that sequester should not happen, not that it will not happen. k.t. mcfarland, what do you think? >> they are were sort of three things going on. virginia is a swing state, military state, naval bases, also about north carolina, big military population.

there was a political thing. on the other hand, if he says there will not be any sequestration and obama wins, he is boxed in. dagen: some worry he gave up a bargaining chip that that will be one of the place going into negotiation. if you take that off the table, what are you left with? >> i think the whole issue of sequestration has another component which is the military and national security component. i will have a strong navy, a strong air force, i will continue to have carriers in the mediterranean and persian gulf to box in iran. if you are cutting the navy, you are cutting defense budget. connell: this whole idea of sequestration, if you read bob woodward's book and the whole idea was to say it will be so

bad nobody will want to do it. i guess that is what the commentary last night was about. however, when they negotiate towards the end of the year, is it fair to say, and another is talk about a different military, is it fair to say that defense cuts of some kind, just the amount of money put in should be put on the table? >> i am a reagan person. even the reagan hawks have said we have to really fix that process. every piece of equipment. it is costing way too much money and taking way too long to get out into the force. there is that issue. if you cut defense spending by that much, you are talking about a major unemployment hit. the estimate is over a million unemployed. dagen: does anyone in the military commanders believe that these cuts will happen at the end of the year? >> the problem is the administration has given everyone orders. the pentagon does not plan on

it. do not take the steps you need to take to reorganize your procurement process. i think they are acting like there is no closer. because it is an across-the-board cut that is supposed to affect pay as well, you will not cut their benefits so that means you have to have a bigger cut out all the other stuff. connell: it is a cry wolf situation. k.t. mcfarland, thank you. >> thank you. dagen: neil cavuto is up next on what the candidates need to do in the final two weeks. how do you deal with this tumbling stock market? connell: then melissa francis lived in california. some of the nations biggest money managers today at a conference. it looks a little nicer than it is here. first, markets now. let's take a look at the

treasury markets. 176 on the ten year. ♪

>> i am lori rothman with your folks business brief. the selloff on wall street continues. triple digit losses after the

dow component 3m and dupont slashed their earnings forecasts. the dow is down 248.5 now. the specialty home furnishing company plans to sell 5.2 million shares in a range of 22-$24 a pop. the market value for the company topped $850 million. drivers starting to see relief at the pump. prices have dropped for 12 straight days. the national average is at a dollars $0.64. aaa also expect prices to drop by election day and even more by thanksgiving. that is the latest from the fox business network. giving you the power to prosper. ♪ i'm a conservative investor. i invest in what i know. i turned 65 last week. i'm getting married. planning a life. there are risks, sure. but, there's no reward without it. i want to be prepared for the long haul. i see a world bursting with opportunities. india, china,

brazil, ishares, small-caps, large-caps, ishares. industrials. low cost. every dollar counts. ishares. income. dividends. bonds. i like bonds. ishares. commodities. diversification. choices. my own ideas. ishares. i want to use the same stuff the big guys use. ishares. 8 out of 10 large, professional investors choose ishares for their etfs. introducing the ishares core, etfs for the heart of your portfolio. tax efficient and low cost building blocks to help you keep more of what you earn. call your advisor. visit ishares.com. ishares. ishares. yeah, ishares. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. dagen: let's take a look at your markets across the board. take a look at oil selling off 3%. lousy earnings reports or

outlooks from 3m, dupont went on your industrials. almost down 2% today. connell: we could talk to neil cavuto about all of that today. first, let's get to the rasmussen polls. mitt romney up in the tracking poll that they do. gaining one percentage point from yesterday. the president, of course, would be down one. dagen: and here is neil cavuto. what happens in the next two weeks? neil: you know, obviously the president was on offense to a degree last night. he was the guy who had ground to make up. obviously, his in-your-face demeanor which was a 180 from

denver. they know down to, you know, aborigines how they are voting or intending to vote. everything. they are telling the obama folks you have to bring your a game to this. these numbers seem to indicate a trend that is not the president friend. it gets very aggressive. romney gets very passive. he lost the debate. i do not know if that was nicole? [ laughter ] obviously they feel that they did not want that.

strategizing, there may have been a point to this. connell: i mentioned this earlier, on the china issue, he has been saying it all along, i guess he does mean it with a currency manipulator on day one. this could be a one state race, wide awake. neil: it could be. i think everything is coated. i just think that if there was a strategy here to sit on a lead and sits on more to the point of momentum. that could be the strategy. it may work. dagen: that is what was so strange about it. laying it all out there and debating on foreign policy.

there was a lot of delicate dancing going on. neil: it seemed to me that maybe romney felt so burnt by the first debate that every time he has an opportunity to bring it up even in the case of drones, i like drones, drones are great, he could have thrown in that they were over ben ghazi recording every minute, even the killing of that ambassador there. that would have been a great way for him to say the drones caught it, did you see any of it. dagen: i do want to ask you, quickly, two weeks you get a selloff in the market. what helps the president? >> i think what is interesting, what all of these companies are saying and warning about. they are all telegraphing trouble next year. they are all telegraphing

earnings contraction. this keeps up, then again, i try not to make a big deal of one day, if the trend keeps up like this, i'm not, ironically, that could work. connell: neil, thank you. dagen: take a deep breath. connell: this tells you what neil will be up doing. neil: i did not ask you to do these promos. they are there. i promote you. i said you have to watch these guys. connell: cavuto. dagen: do not ask me to watch you. [ laughter ] [ talking over each other ]

connell: varney & company. this is pretty good election coverage. varney & company, lou dobbs -- thank you, neil. dagen: you will like him again. thank you, neil. the biggest money managers in the country are going to california. connell: melissa francis is there all day covering that. what is the top there now, melissa? melissa: we are in dana point. there are hundreds of millions of dollars walking around this property. we are eavesdropping in on all of it. what a better day to be listening to investors and what they are thinking about. we have jim mc colgan coming up in the next hour. he was very bullish on this market. he said if there were any

pullbacks, he would see that as an opportunity to buy. we will see if he still feels that way. coming up at 1:00 p.m. eastern, we have this ceo of tb ameritrade. he has a birds eye view. you heard that retail investors are putting on the brakes. he knows because he is doing all of their trades. what is on investors minds? what are they thinking on a day like this and how are they reacting? there is no better place to be on a date where the market is giving you -- then right here with us. we will be back with that in just a little bit. back with you guys. dagen: melissa, thank you very much for that. connell: back to nicole petallides on the new york stock exchange. nicole: we are seeing accelerated selling now.

we see the dow down nearly two full percentage points right now setting new lows for the day. we are seeing selling across the board and all of this comes on the heels. it is because of these earnings coming out. it is a global picture when they say slowdown, soft global economy, we are seeing neighbors like 3m, dupont. last week it was intel and ibm. they are all giving tepid outlooks. let's take a look at facebook. as we wait for facebook today after the bell, they talk about how they will get more ad revenue, what will make people want to get back into facebook's because a lot of people got out. facebook, netflix, brought, and panera bread all in the 4:00 o'clock hour. connell: mary shapiro getting set to hand over reins there at the fcc. charlie gasparino has been

reporting on this. dagen: 257-point on the down right now. there are some gainers. look at yahoo! go. ♪ [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

connell: this is a fox business exclusive as we talk about mary shapiro. it is a hot topic that charlie gasparino has been reporting for us. she is preparing to leave the commission. dagen: you will be hearing from mary shapiro and just a few minutes on market now. charlie says she has left some

unfinished business. charlie: that would be the structure of the market. we actually have markets on every trading desk on wall street. that is something the ceo of the wall street exchange and the ceo of the nasdaq approached mary shapiro. what do shapiro tell them? this is from sources both close to them. she needed more political support in congress to go after market structure. they argued that because of this, the markets are essentially in disarray, that you have many private markets that operate across wall street and this will be an issue going forward. this essentially could lead to another flash crash. when you talk to people at the exchanges, people in washington,

they will say simply this, there is not a lot of will to deal with this issue. mary shapiro kind of understand it as an issue. we had the flash crash. when did that happen? two years ago. what has happened since then in terms of the sec addressing the terms of market structure. i like mary schapiro. i think she was a decent chairwoman. she came and when morale was very low after bernie madoff pulled his ponzi scheme. she did one thing amazing, she appointed bob as her enforcement chief. he is a former federal

prosecutor. one of the smarter guys in the business. i think he did a great job. the negative of mary schapiro and i think this will be a problem with her legacy going forward is that this notion of what is a stock market has never been addressed. if you believe the status quo, they are saying that the stock markets, individual investors, should feel comfortable that when they buy a stock, it is not being traded, it is not being matched, the orders are not being crossed. it is being crossed that some dark pool on the new york stock exchange. they had to create a dark pool to create with the dark pools at goldman and all these other firms. is that the way our market should be? there is a debate. i think, no. they lose a little credibility when they argue ttis because they are for-profit companies.

they are arguing, talking their own gain. however, there is something to be said when goldman sachs makes a market is the investor getting the fair price? does this put small investors at a disadvantage? these are things that i think mary schapiro should answer. like i said, her legacy, in many ways, could be defined by not fully addressing this issue. connell: thank you, charlie. dagen: mary schapiro, coming up. connell: we will get to that. cheryl and dennis are straightahead on markets now. 244 almost to the downside. we will keep covering it on fox business. do not go away. ♪ follow the wings.

. . dennis: the markets now.

>> that's the market by the way, it's been a mess, down 200 plus points. big companies says it's not great. >> yesterday, it was caterpillar, united technologies and should be worried, frankly. >> i guess. >> and markets know and rights now. cheryl: that's a great point they're making we're not getting the type of quarterly reports. dennis: we've got a guest coming you. even quarters beyond are of a concern. cheryl: i'm cheryl casone. dennis: i'm dennis kneale, an ugly selloff on the earnings, and live and plus, we have a guest who says, blame washington. cheryl: charlie gasparino reporting that mary schaprio is looking to leave her post next month and she joins us next and we'll ask her about her plan.

dennis: size matters, they say and just expected roll out of the apple's i-mad mini, whether it cannibalize the higher ipad line. cheryl: and stocks and commodities selling off this hour and the market is hour and 15 minutes. and jeff flock standing by at the cme. first is nicole petallides standing on the floor of the new york stock exchange. nicole? >> cheryl and dennis, traders on wall street continue to watch the markets selling off and breaking through the support levels and a bearish breakdown as they call it. friday, we were down over 200 points and here we are today, down 241 points right now. and as we speak, with a majority of the dow components, with 29 of 30, with the exception of microsoft, on the heels of the companies giving outlooks they're having to trim forecasts. looking at names like dupont, united technologies, and 3m.

last week, ibm and intel and mcdonald's, talking basically about slower growth and a tough global economy. i want to take a look at dupont. another name, a key dow component and they're cutting jobs about 2% of the work force, about 1500 jobs in their earnings they missed the forecast below the wall street analyst estimates and the stock is down 8 1/2%, that's it for the floor of the stock exchange, let's go over to jeff flock. and to the pit here in chicago, not pretty here either. i want to put the boards up, everything, almost everything, commodity-wise down today. take a look, everything from oil, now below $87 a barrel, and gasoline is down over 2%. and the metals, copper, down almost 2% and gold down, too, what's going on. >> waking up to the fact that we've revised earnings lower and lower and not getting over it, and this is a global selloff on

earnings and number two, we've revised some of the gdp numbers and that was quietly unnoticed by the market. i always like to leave somebody with a positive. natural gas is up and possibly weather? >> natural gas has been beaten up before. if you look at a ten year chart. and they do go up finally. >> we've sold off as much as we're going, or more room to fall. >> more room to fall and i think there's more disappointment out there. i think we're not done yet. >> the edge of the s&p pit. we'll be all over here, guys today. >> and nicole petallides and jeff flock. earnings get much of the blame for the selloff today. the next guest says don't let washington off the hook either. james leventhal at leventhal asset management. 245, is this overdone?

>> i don't think it's overdone, but not preaching ends of days either. a basic problem, that revenue growth is to be expected when you think that gdp is as tepid as it is globally. talking the developed world would be excited to have 2% gdp growth. it's hard to get revenue growth faster than gdp growth and we've probably reached the speed limit as far as revenues are growing, margins are high and you know that earnings have probably gone as far as they're going to go and whether it's caterpillar or any number of companies, that are reported so far, they are basically saying look out the first half of the year is flat earnings. >> year to date. s&p 500 was up 14% until recently, so what changed? >> what changed? >> what changed is the market evidenced by 14% return on the s&p 500 was thinking that the economic slowdown was 1/4 in length. what we've been preaching for a couple of weeks, the slowdown is probably about 3/4 and the reason for that does go to washington. and you've got a contentious

election going on right now, which is missing the point that we have the fiscal cliff coming up. if you're a corporate chieftain and thinking about building a new plan, hiring new workers and conglomerating with any other businesses or aquisitive expansionary actions you're not going to do it, if you're not sure your tax rates are going up 50% and that number is just on capital gains, going 15% to about 23.8%, and it's not the regime in which you do that. what you do as a corporate chieftain, you bunker down, not just keep your head below the fox hole, it's going into an underground bunker, your client i'm staying in that market and put more money in today. because the fiscal cliff is so dire, there's no way these guys let it happen they're going to work it out. what do you tell me. >> that's a fairly ragsal thought. we happen to think there's a chance, a chance it won't get results before year end. if it happens it will be like tarp in the fall of 2008.

congress voted down and i think less than a week later that congress vote it had into action, so, if the markets do not get a resolution to the fiscal cliff before year end they will probably respond so poorly the politicians will act to stave off calamity. it's okay to nibble, but don't catch the falling knife. it may not be a correction, but probably some to go. >> the dow is 13,100. will we be higher or lower at year end? >> you know, i'm going to do something i shouldn't. >> you're going to waffle. >> no, not only market time. i'm going to short term market time. not year end, but over the next month probably a week after the election, this market will be lower than where it is now and probably the time to buy. as for where it will be relative today at year end? i don't know, but when you hit that low, probably 12,500 or so,

you can probably feel reasonably certain that's a safe level to buy. >> you see this market going from 13,1 to 12,500 first before it can go back up? >> again, throwing 600 point decline. >> thank you for selling that fear for us. >> sorry-- >> and it's going to present some buying students and some-- >> exactly right, exactly right. and let's-- unless we miss the scale of this that's not a market correction and this is not going out and sell everything today. this is for those of you and our clients are some of them who followed our advice and they have cash on the sidelines. start nibbling, but pick your spots. you don't have to wait until 2013. the markets will digest what's going on. pick your spots and get in there. >> and hope going along with the fear. >> not preaching fear. dennis: thanks being with us, james lebenthal. cheryl: to drowning in debt,

america's foreign debt equals 5 1/2 trillion dollars. that's roughly 47 1/2,000 dollars per american house old according to the latest data released from the census and the treasury bureau. we amount to a little over 10,000 a household. the other market concern right now is the united states and the debt situation, and it's going to be getting worse in the next four years, and not any better, a negative. >> yeah, the one up side. the more we owe china, like the old saying, that when you owe the bank a million dollars the bank owns you, but when you own the bank a billion dollars, we own you, we own china and one trillion dollars in u.s. assets harder to go to war with us. cheryl: the japanese, too. dennis: charlie gasparino reporting that mary schapiro wants out as sec chairman. cheryl: and the final debate in

the history books, we'll tell you how the presidential candidates are putting on the last full court press for crucial undecided voters and handicap the series debate this, our special series leading up to election day. >> is your smart phone making you sick? disgusting, yes, but news you need to know next. cheryl: and first what whee do every day this time. oil, major sell off. 86.38 down more than $2. and oil selling off with stocks. we'll be right back. [ engine revving ]

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>> all right. we want to take a look at the dow jones industrial average. we're in the middle of at major market selloff and not just equities, but major pressure on commodities as well. right now, the dow triple digit loss at 13,100 and we'll tell you a few minutes ago, close to the 13,000 number a lot of quarterly reports from some of the disappointing investors. >> the final debate is over with two weeks left in the presidential race, the two rivals working to woo the last undecided voters, peter barnes joins us from d.c. and more, peter. >> president obama sticking around florida, a key swing state for a post debate rally this morning, where he slammed mitt romney on foreign policy.

>> last night, he was all over the map. >> okay. well, we like to fact check the debates. here is the fact check. both candidates are all over the map today and tomorrow, and headed to the swing states, they feel are critical to winning on november 6th, obama in florida this morning, and then on to ohio and iowa, colorado and nevada and pop into l.a. tomorrow to tape the tonight show with jay leno. mitt romney is hitting iowa, feeling good about florida did not stick around there this morning, and the rear clear politics average, a battle ground polls up in florida by 1.8%, but the averages also have the president up slightly in ohio, iowa and nevada. and colorado looks like a dead heat. so the candidates themselves are voting with their feet, travelling to the most critical

of the ten or so swing states post the last debate. dennis. dennis: what about the new economic plan that the president is flashing around today? >> yeah, the president has a new 20-page economic plan he's waving around just like this. and no new proposals in it, but the campaign has printed 3 1/2 million copies for distribution in the next two weeks. >> it's only a matter of time before congress turns out 2000, 3000 pages in some kind of bill. thank you, peter barnes. cheryl: there may be two weeks left in the presidential race, but sales of halloween masks of the two candidates already called the big winner for your kids this halloween. all right kiddies, president obama is right now the big winner, accord to go retailers, spirit halloween which uses their own presidential index tracking the sales of halloween masks nationwide and very unsciintific, and maybe the halloween chain has done a good job, accurate in predicting the winner since 1996, but there you go.

president obama, 60%, mitt romney 40%. there you have it that's the election everybody. dennis: yeah, and there's a tough-- and more great features to look at like the ears, just more attractive. cheryl: and i'm going to be dennis kneale. it's 15 past the hour and stocks every 15 minutes and all right, stocks now, stocks yesterday. stocks moving into the close, this is not a good day, nicole. >> i did see the masks, nothing to say about it yet. let's look here what's going on with the markets, and we're selling off across the board and tax onto the losses, we saw significant losses on friday where the dow was down 205 points today. and down 228 as we speak, the down volume, the vix, the u.s. dollar that's been strong and s&p is down 1 1/2%. let's take a look at names that are dragging on the s&p 500, which includes monster energy drinks and that was and been

down significantly and they're probing five debts that may or may not be related to monster, says there's no relation at all. however, other people contend otherwise, other names such as dupont, also giving a look and xerox out with the numbers. so, earnings are driving this market to the down side, dennis and cheryl. >> all right, thank you very much, nicole. and charlie gasparino reporting that mary schapiro is looking for an early exit at sec chairman. we are going to asking her coming up. cheryl: and the apple faithful are out in force today. but is apple basically eating itself? well, the tech giant is pushing ahead with the ipad mini. dennis: that's known as cannibalization. ooh. dennis: how the currency is faring against the doll. the doll up. when there's a panic globally. we are in a teensy panic today.

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>> that's why lauren green with your fox news minute. the u.s. hurricane center expects tropical storm sandy to reach hurricane strength tomorrow as it reaches jamaica.

and a tropical storm warning has been issued for the island and currently maximum sustained winds at 45 miles per hour and 300 miles from the island capital of kingston. and on the way to the international space station. a russian rocket from kazakhstan including american astronaut kevin ford. it will reach the station until a two day journey. and "the scream" on display at museum of modern art. it sold to a private collector in may and many consider the image of a manholing his head screaming as a modern symbol of human anxiety. the exhibition runs until april. that's the fox news minute. i'm lauren green, back to dennis. dennis: anxiety or a horrible

hangover. app apple's expected unveiling of the mini ipad. and next says it could cannibalize other wares. do you think the real aim is because customers want a smaller screen or is the real aim for apple to get to customers who could only spend 200, $250 and weren't buying the bigger ipad? >> well, it's a combination of both, dennis. and good afternoon to you. i think you should look at apple, ipad mini or whatever it's called later today and the opportunity here to further segment in the marketplace. you think about price point and opening up new applications perhaps with a smaller device. >> 250 smaller expected price point. does it dodge directly with a kindle fire? that's a price difference versus the kindle fire. >> we've recently completed a consumer survey, yes, we think there's significant demand for a smaller device out there. one of the big questions as you point out is surprise.

and i think the sweet spot based on the results of our survey, mid to high $200 price point. the rumors it could be over $300, we'll wait and see. and i think they can justify that given the applications to the eco system, et cetera. dennis: do you know, is it a kindle killer? will it be a kindle fire killer? >> i think no question, creating a significant competitive threat and will likely take share at that smaller price point and tablet in size. whether it's a kindle killer, i don't know, but a share to gain in that piece of the market. dennis: that survey of a thousand consumers, you found a significant difference in demand nor an eight inches versus seven inch screen, talk about that and what we'll find today. >> that's interesting, as you look the at the smaller tablets most of the seven inch variety we thought most with steer clear-- would steer towards that type of

device. and most investors were interested in an eight inch defense. since that's public,it's clear based on the rumors out there. it will be closer to eight inches and i think it will be off the mark there. >> and you also found that only half of the consumers in your survey said they'd be making incremental purchase, the other half would buy it instead of an ipad. is that bad news for apple? doesn't it bring down apple margins if the product is too successful? >> it's interesting to see what it looks likes. i think what we're most encouraged by is the fact that close to half the consumers we surveyed indicated they would be interested in a smaller tablet. as you point out roughly half of those, said they would likely cannibalize one of the exiting products. and roughly a quarter suggested they'd be buying a smaller ipad instead of an ipod touch and another quarter roughly the bigger ipad. your an asking mar begins, i

think the question, probably lower margin on average, but i think clearly should be the overall gross profits and profit act of the company. >> i believe that amazon loses money on every kindle fire, but sees it as an ability to purchase items. but apple, sells pretty cheap items, will they lose on this device? >> no, apple has a history of making on devices and the corporate average,en ipad is south of that, but i very much believe they'll be making big money on that. dennis: and ipad power, we appreciate you being with us. >> thanks, dennis. cheryl: is mary schapiro looking to leave her post early as sec chairman? we'll be asking her, she'll be joining us live in moments. >> and the presidential candidates putting on the last minute full court freeways for

undecided voters after that debate last night. >> what do they need to do now on this hour's debate. our series moving up to election day, we're going to be asking that question. >> take a look at today's s&p, if there are winners and a whole bunch of losers.

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who have already enrolled in the only medicare supplement insurancplans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you thousands a year in out-of-pocket costs. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. er, stocks every 15 minutes. stocks are sneaking up. hope euro carry over there. nicole: we are looking and the market under pressure. when you talk about it being a down market this certainly is one. we have been breaking key levels, a bearish sign here.

what you see after that is the that the next level of support. on the dow jones industrial some people looking at 13,000. on the s&p 500 another level is 1390 and the s&p futures. they are anticipating what i talked to, some downside potential and earnings we have been getting and more importantly the outlook for dig companies that have been weak. let's talk about one, 3m which is a revenue miss, but for the quarter they did okay but the outlook they are talking about for, soft global economy doesn't bode well for the company and that makes everything from materials to adhesives to materials for cars and airplanes. you know them from scotch tape post-it notes but they do a lot and their outlook is bleak and you see it is 3.5%. cheryl: right now it is time for our debate, we take on a

different issue that matters all the way up to election day, foreign policy was the focus of last night's final debate. here's one exchange. >> whether it is afghanistan or iraq or iran, you have been all over the map. >> attacking me is not an agenda. attacking me is not talking about how to deal with the challenges that exist. cheryl: is our turn. foreign policy addition, a former state department's senior adviser for president bush and bernhard whitman is author of 52 reasons to vote for obama and the ceo of whitman inside strategies. to you first on this. was mitt romney's defense against the president correct? did he take the right tack in strategy? >> i think so. i was concerned when libya came up. romney gave obama a pass on what has essentially been a cover-up.

the u.s. government lying to the american people about what really happened in libya but what romney was doing really was letting obama take the first punch which he did in his first response. obama very aggressive and and presidential, bitter throughout the entire debate and romney making some good counterpunchs but doing it very delicately, relieving the president hard on what romney called his apology tour, the trail of allies like poland and the czech republic but keeping it relatively clean and focused on the future and lloking presidential. cheryl: at the same time that is a fair question, the issue of libya. many believe governor romney mr. key opportunity last night to go after the president on the issue of libya. did he miss an opportunity? >> the fact that he failed to bring it up, he really failed to articulate properly in the first debate and failed in the intervening period, to raise the

issue, shows he cannot figure out how to politically exploit the tragedy of the murder of a u.s. ambassador and the american people are tired of that. if romney had an opportunity to drive that distinction and thought he could curry favor he would have. clearly doesn't. the reason is this president has been an extraordinary commander-in-chief and the difference in the debate last night was obama looked authentic and resolute. [talking over each other] cheryl: both of you say you're gonna look presidential and done with expect that but at the same time this president is dealing with an economy that has come back in four years and governor romney made a point within the foreign policy debate that president obama has not protected the u.s. economy making us week against our enemies overseas. >> the fact that mitt romney is quoting mahmoud ahmadinejad is laughable. mitt romney look like a deer in headlights getting is talking points delivered through his earpiece from someone reading the obama debate strategy because you agree with the

president on afghanistan and iraq and syria and groans. he has little to offer and frankly the president schooled him consistently. cheryl: do you think the president school mitt romney on the issue of the economy? is that there? >> i don't think so. it was masterful that romney brought it back to what people care about. going back to this issue, the democrats talking points, mainstream media talking points that these two agree on everything is completely wrong. romney came out and articulate a vastly different approach to syria. obama's policy is do nothing and rely on the u.n.. romney's policy is we want to have some influence over the people who are going to inherit assad's weapons. let's give arms to the second arrest. and the future of the middle east and confronting islamists. talked about iran and obama lot about iran saying he has been working on sanctions from the beginning. obama's inaugural address had a

love note for the iranian regime. cheryl: we will continue this with many more debate coming up. thanks to both of you gentlemen for your support of your candidate. we have three under our belt and eight more to go with exactly two weeks until election day. each day we focus on an issue important to you and your decision. next up tomorrow we focus on this will be fun, the federal reserve. you don't want to miss it. dennis: feel the cold coming on, don't blame your kids or co-workers because it could be your filthy phone. the disgusting details. cheryl: mary schapiro looking to leave early as chairman of the securities and exchange commission? we will be asking her come in the next. dennis: the ten year treasury and all the fear out there. demand up.

tracy: i am tracy byrnes. the bears on wall street continuing after big-name companies reported weak quarterly earnings and lowered forecasts for the rest of the year. right now the dow is down 218 points. america is selling its $6 billion consumer credit portfolio to td bank, the retail giant expects to use 90% of the proceeds of the sale to repay the debt and the rest for stock repurchasing.

td will take over all target operations for seven years. bankrupt video game company 38 studios begins its second asset option today. 2100 items are being offered including several prints autographed by the former red sox and philly pitcher. 38 studios default on a $75 million loan guarantee back in 2010. that is the latest from the fox business network giving you the power to prosper. let

cheryl: praised by some for rescuing the securities and exchange commission in the aftermath of the bernie madoff scandal mary schapiro has been criticized for others for not enforcing stricter penalties on wall street and not addressing market structure. the chairman of the sec just wrapping up the talks on financial regulation at the business conference in man had been. chairman, thank you for your time. appreciate it. >> thank you. pleasure to be here. cheryl: my colleague charlie gasparino reporting your looking

to leave next month. what are your plans? >> i don't have any plans. it amuses me that there has been speculation about my departure being imminent for about two years. i take this in stride as being more of the same. cheryl: we look forward to hearing what your next move may be. and current business with regards to the volcker rule there are reports that the sec has been in disagreement about language with banking regulators. do you think this will be written by the end of the year? >> before i answer that, i want to disagree with the premise you started with at the beginning. we have had a record year in enforcement and higher penalties than ever before in the agency's history. the enforcement program has done an extraordinary job. beyond any other financial regulator perhaps ever but certainly over the last two years out of the financial crisis with more than 110

entities and individuals in the financial crisis cases and more than half of those, the ceos and c f os and other senior management. it is important for your viewers to know the sec is the cop on the beat and we are aggressively enforcing the laws and as i said at a record level. when the second market structure, we tackled market structure repeatedly over the last several years and continue to do so but we have a lot of new rules in place and protections that didn't exist before on -- when i arrived and helped make the market structure more resilience and protect investors. i had to get that out. i wanted to put to rest any misunderstandings on the volcker rule. the agencies have been working very hard to come up with a uniform volcker rule and asked banking regulators to propose the same rule. then we got 19,000 letters, very detailed, very thoughtful and we have been working through all of

those letters and trying to come to a final rule we can agree on. there are differences as you expect there might be when you have banks and broker-dealers, swap dealers and others that are such different institutions dealing with the market in different ways. i think as the agencies are working well together and trying to come to closure. cheryl: let's talk about market structure. i am curious if you had any conversations with the heads of the exchange about these private markets. do you think there is still concern about another flash crash and many investors worried we are not protected. >> i talked to the head of many exchanges that we have from time to time about market structure issues and when the flash crash occurred, the head of every exchange to washington immediately to help hammer out

remedial action and to insure that we would not have another flash crash. that is how we end with a single stock circuit breakers and marketwide circuit breakers and the -- access to the market, clearly erroneous trade rules, and large trade reporting system and consolidated audit trail at the sec. we have been pretty aggressive trying to move forward on market structure issues. there is more to do and you will see more coming over the next several months including something we call rag f c i and exchange adequate capacity and resiliency and availability of their systems and test for those in a very rigorous way. we brought a case recently against the stock exchange. making data available to retail investors to proprietary data feeds and enforcement efforts. and broker-dealers following the

market access which is a question in the night debacle. cheryl: several issues. you did a round table and have done a round table and talk about the issue of high frequency trading. is it possible we could see the action test to slow down high-frequency trading that there is more accountability in these trades? >> congress is debating a transaction task or being debated in europe has well. there are other opportunities out there. we can x floor and are exploring exchanges after night came back to the idea and market participants not just exchanges the idea of a kill switch and we also talked about minimum timing for orders which is something the europeans are looking at as well where an order would stay live in the market for have a second or some increment. we're looking at marketmaker obligations and a wide variety

of additional measures to bolster market resiliency but it is important people understand we continuously have taken steps over the last four years to improve market structure. cheryl: one recent story that surprised many on wall street was the exit of vikram pandit at citigroup. to you think they will look particularly at the board handled the release of the information about his exit? >> that is something i can't comment on. cheryl: okay. before i let you go back to this. you came into the sec as chairman at a difficult time for all of us with a market crash and with bernie madoff. if you were to leaving you don't want to comment on your future plans do you think you would go back fans look at federal once again or go back -- is there something more you want to do in your career that could be next or exciting to you?

>> i have no plans right now. i am certainly not going back anywhere i came from, but i show every day at the sec doing the best job i possibly can for american investors and that is where my focus is. cheryl: many investors, we have confidence from the investing public at an all-time low. and the same conference er at. and how we change that. how do we tell the american public they trust public markets once again. >> not surprising coming out of financial crisis, and people will take some time to rebuild trust. is incumbent on the industry, intermediary to work with investors that they treat fairly and the interests first in all things they do. it is critical the exchanges

have the technology and resiliency and provide a level playing field they can for investors, orders to interact. critical public companies get the disclosure that investors need to make rational decisions how to allocate their capital. everybody has a role to play, regulators and exchanges and broker-dealers and public companies and mutual funds and other intermediaries have a role and it boils down to putting interests of the investor first. cheryl: chairman mary schapiro from the sec, appreciate your time. would love to have you back anytime. please come back. >> i will. dennis: to the stock exchange floor with the dow down by 220. nicole: tough day on wall street. we are down 1.6%, a loss of 220 points on the dow jones industrials, we're seeing selling across the board from sector to sector whether it is banks or drugs or retail, oil services for example, all with down arrows and a lot of this

because of the earnings we heard from, big major players, giving out looks and forecasts below analysts' estimates. i should also note that with this move down 220 points this is the second two hundred they loss we've seen in three trading days. we have not seen that kind of close consistency in nearly a year. we will get more earnings "after the bell" including parent bread and broadcom but a lot of numbers have been weak. dennis: the nasdaq dropping below 3,000 by a kick. things are depressed out there. coming up let's get small. we are moments from apple's rollout of the ipad mini but will it cannibalize sales of the company's bread-and-butter? cheryl: i want to look at the actual winners on the nasdaq and

yahoo! is one of them, virgin media and certainly on a day like today you will have more losers than winners. we will be right back. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

dennis: fiscal cliff, fickle voters, big money investors placing their bets and no better place to find out what they are thinking than the td in ameritrade investor conference in california where melissa frances have it covered. your first guest says to buy american. melissa: i am joined by jim mccoughlin, a principal investors ceo.

you have $260 billion under management. excited to have you here. good morning to you. you said you were bullish going into earnings season and if there was a pullback, you were going to use it as a buying opportunity and you thought investors should. how do you feel? >> you are seeing a pullback but this happened partly because some of the results have been disappointing. interesting that the commentators have focused on revenue as a proxy for the economy and the capability of company's to make earnings. that has been disappointing so far this earnings season at least in the more recent announcement. you have also got spain in a difficult bond auction and backing up of field. the question whether europe is coming in the two to get their meaning setbacks and the setback i think should be viewed as a buying opportunity. cit melissa: a lot of these companies guidance is weaker and laying off workers, not just

rearview mirror revenue stuff, forward looking, it is tough out there. >> it is tough out there. the third quarter will most likely turn out to be the weakest quarter either side, the weakest in a year-and-a-half and most likely turns out to be the weakest quarter of the next three four as well. i saying that because you have a number of things going on that should help, notably the housing market looking better in parts of the country and some innovation going on. i have been quoted saying the iphone 5 is a bigger stimulus to the economy than q e 3. lots of good things going on as well. the job picture is steadily improving so what i am suggesting is these are volatile markets. volatility is probably the most confident thing you can expect. cheryl: where do you see the opportunity in a day like today? people of filled with

trepidation when they mark -- what a market like this, two of three trading sessions? >> most people watching this from home should be looking at areas that are hit worse with more volatility than the market and i think that you should be looking at small caps which will continue to do quite well for the u.s. economy and some areas like technology when they are hit, a lot of innovation, caterpillar give down beat estimates for the next few years but only slightly down beat and you have to remember -- i like technology generally. i would saying the likelihood here is companies are massaging expectations down and will do all right going forward. cheryl: thank you so much. coming up, the ceo of tv

ameritrade has of bird's i into 600 workers accounts and how investors feel and what they're doing coming up on markets now. cheryl: apple said they have more to show, is it a many ipad? we a three minutes from finding out. we will find out big names from apple with lori rothman having full coverage including that of a new product from inside the big event. dennis: more from melissa frances at the td ameritrade investor conference. an exclusive interview with the ceo and president. don't want to miss that. [ male announcer ] do you have the legal protection you need?

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